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MAG expects delivery of another seven B737 MAX-8 despite Boeing's slow production, RPF for new aircraft orders in coming months

KUALA LUMPUR: Malaysia Aviation Group (MAG) expects to receive seven new B737 MAX-8 aircraft in the next few months as the group aims to have a total of 11 of the narrowbody aircraft in its fleet by year-end. 

This is despite the lower production rate of the B737 MAX aircraft at Boeing's production facility in Renton, Washington. 

"MAG is working closely with Boeing on the 2024 deliveries. We're expecting seven B737 MAX-8s to be delivered in the coming months with a total of nine aircraft to be delivered in 2024," MAG spokesperson told Business Times last week.

MAG already has four B737 MAX-8s in its fleet – two were delivered in 2023 and another two earlier this year. 

Last month, Boeing Commercial Airplane senior vice president of quality Elizabeth Lund said the American plane manufacturer had slowed down its 737 MAX production as the company implemented a change in its safety and quality systems, and strengthened employee engagement in its factory. 

"We have slowed down our factory (production) over the last few months to make sure that these measures are under control as we retrain our employees; as we make sure that our processes are clear; as we make sure that our suppliers are coming along with us," she said at a media briefing in Renton. 

Lund added that Boeing had pledged that all of its B737 MAX airplanes from its Renton factory will be safe. 

An order of 25 B737 MAX-8 was made in 2016 by then Malaysia Airlines Bhd valued at US$2.75 billion at list price at that time. The order waspart of MAG's first batch of new single-aisle aircraft program. 

MAG received its first B737 MAX-8 on 16 Nov 2023 after a series of delivery delays by Boeing starting from May to August and finally to November. 

In April this year, MAG group managing director Datuk Captain Izham Ismail told Business Times that he was disappointed with the aircraft delivery delays but believed that Boeing would be able to settle all of its issues. 

"Boeing has built airplanes for over 100 years. They know what to do," he said in an exclusive interview.

Izham also said the second batch of MAG's single-aisle aircraft program would be another 25 planes, which will make up the group's new narrowbody fleet to 50. 

During the interview, he said MAG will issue a request for proposal (RFP) for the 25 new aircraft in the second quarter of 2024 as the group reviews its network again due to global external changes. 

Currently, the group's spokesperson said the RFP would be finalised by the third or fourth quarter this year instead. 

"We're in the process of finalising our long-term network plan to guide the fleet selection exercise. We aim to conclude this by the third quarter or fourth quarter this year," the spokesperson added. 

Aviation experts have said new orders of Boeing and Airbus aircraft would see earliest delivery after 2031. This excluded any delivery delays caused by external factors such as supply chain and production issues. 

On widebody aircraft, MAG is on track to receive its first Airbus A330neo (new engine option) in Sept this year as the group unveiled the aircraft's livery featuring the Malaysian flag last week. 

The aircraft will now have the Rolls-Royce Trent 7000 engines installed and undergo performance tests in preparation of its first flight.

MAG ordered 20 A330neos in 2022 to replace its A330ceos (current engine option) fleet. The group has an option for another 20 widebody planes for future expansion. 

The A330neos will serve routes across Asia, Oceania and the Middle East.

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